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GrainCorp calls for changes to port access code

GrainCorp chairman Don Taylor is pushing for changes to the Federal Government's draft code of conduct for port access.

ABC Landline

Australia biggest east coast bulk handler, GrainCorp, says it doesn't support the Federal Government's mandatory code of conduct for port access, in its current form.

The draft code aims to ensure more competition and transparency from bulk handlers at ports.

GrainCorp chairman, Don Taylor says he supports the concept of the code, but he'd prefer there to be no regulation at all.

"We think there's a lack of equity in terms of operators who can fit outside the present code and can effectively compete with us, and these are typically multinationals 30 times the size of GrainCorp.

"So we don't mind competition, we just think that competition needs to be on a like for like basis."

Under current legislation, only port terminal operators with a wheat exporting business must pass an access test, which is overseen by the Australian Competition and Consumer Commission.

The proposed code is designed to ensure that smaller exporters or 'tier two' operators, who don't own port infrastructure, have greater access to terminals.

"Where there's a tier two operator determined in a port zone, then we think that that if there is a tier two operator anointed in that port zone, then by definition the other operator should also be a tier two and also exempted from the operations of the code," he said.

"We don't have a monopoly and if we take Newcastle for example, where we have a competing terminal there, and the ACCC has recognised that there is competition in that port zone and it has actually provided a draft ruling that we should be exempt from the code.

"We just want to see that principle applied to all port zones that we operate out."

Mr Taylor says tighter regulations will cost the company financially.

"We're lookinG at $1million a year in terms of dealing with the code and the issues around it, but that's just the administrative cost," he said.

"The regulations actually make it very difficult for us to behave commercially and quite often we have to break the rules to respond to what the marketplace actually wants."